Correlation Between CareMax and EUDA Health

Can any of the company-specific risk be diversified away by investing in both CareMax and EUDA Health at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CareMax and EUDA Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CareMax and EUDA Health Holdings, you can compare the effects of market volatilities on CareMax and EUDA Health and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CareMax with a short position of EUDA Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of CareMax and EUDA Health.

Diversification Opportunities for CareMax and EUDA Health

-0.12

Correlation Coefficient

CareMax  EUDA Health

Good diversification

The 3 months correlation between CareMax and EUDA is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding CareMax and EUDA Health Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EUDA Health Holdings and CareMax is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CareMax are associated (or correlated) with EUDA Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EUDA Health Holdings has no effect on the direction of CareMax i.e., CareMax and EUDA Health go up and down completely randomly.

Pair Corralation between CareMax and EUDA Health

Given the investment horizon of 90 days CareMax is expected to under-perform the EUDA Health. In addition to that, CareMax is 1.74 times more volatile than EUDA Health Holdings. It trades about -0.18 of its total potential returns per unit of risk. EUDA Health Holdings is currently generating about 0.02 per unit of volatility. If you would invest  456.00  in EUDA Health Holdings on August 31, 2024 and sell it today you would lose (24.00) from holding EUDA Health Holdings or give up 5.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CareMax  vs.  EUDA Health Holdings

CareMax

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CareMax has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

EUDA Health Holdings

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in EUDA Health Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent fundamental indicators, EUDA Health may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with CareMax and EUDA Health

The main advantage of trading using opposite CareMax and EUDA Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CareMax position performs unexpectedly, EUDA Health can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in EUDA Health will offset losses from the drop in EUDA Health's long position.

The idea behind CareMax and EUDA Health Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.